Arla Foods Consolidated Annual Report 2021 slide image

Arla Foods Consolidated Annual Report 2021

130 Arla Foods Consolidated Annual Report 2021 / Environmental, social and governance (ESG) data / Notes Social figures 2.1 FULL-TIME EQUIVALENTS Contents III an FTES INCREASED DUE TO INSOURCING AND INTERNATIONAL EXPANSION People are crucial to Arla's success, so it is imperative to know how the group deploys these resources across geographies and time. The number of employees is measured in full-time equivalents (FTEs). The total number of FTEs increased by 3.0 per cent compared to last year. A key driver was insourcing of administrative tasks in UAE and Oman and expansion of production capacity in Bahrain to enable increased demand and the move of production lines from Denmark and Saudi Arabia. The increase in FTEs in Denmark can be ascribed to expansion in Arla Foods Ingredients and insourcing of IT and marketing activities. Over the last five years, the FTE level increased on average 2 per cent per year. The numbers show a shift from our core European markets to Poland and international markets, especially to MENA. This supports Arla's strategic plan to expand the share of business outside Europe, where the outlook for growth is more promising. Full-time equivalents split by employee type, 2021 White-collar 37% Blue-collar 63% 20,617 Employees ESG Table 2.1 Full-time equivalents 2021 2020 2019 2018 2017 Denmark 7,565 7,350 7,258 7,264 7,069 UK 3,616 3,761 3,407 3,387 3,477 Sweden 3,076 3,114 2,977 3,001 3,029 Germany 1,590 1,632 1,681 1,759 1,809 Saudi Arabia Poland North America 974 970 952 965 1,009 582 529 511 463 433 501 479 477 502 496 The Netherlands 349 351 339 327 320 Finland 364 336 319 325 325 Other countries 2,000 1,498 1,253 1,197 Full-time equivalents 20,617 20,020 19,174 19,190 1,006 18,973 Accounting policies FTEs are defined as the contractual working hours of an employee compared to a full-time contract in the same position and country. The full-time equivalent figure is used to measure the active workforce counted in full-time positions. An FTE of 1.0 is equivalent to a full-time worker, while an FTE of 0.5 equals half of the full workload. The average FTE figure reported in Note 1.2 in the consolidated financial statements, and in ESG Note 2.1 is calculated as an average figure for each legal entity during the year based on quarterly measurements taken at the end of each quarter. All employees are included in the FTE figure, including employees who are on permanent and temporary contracts. Employees on long-term leave, e.g. maternity leave or long-term sick leave, are excluded. The majority of employees in production and logistics are classified as blue-collar employees, while employees in sales and administrative functions are classified as white-collar employees. The ratio of white-collar to blue-collar employees is calculated based on FTEs as at 31 December. Employee data is handled centrally in accordance with GDPR. The FTE figure is reported internally on a monthly basis. To improve data quality, data is validated by each legal entity on a quarterly basis.
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